Beware bespoke code copyright issue

Concern is spreading among IT managers that software firms are driving an ever-harder bargain over the ownership of any intellectual property created when they work with a user to tailor products for an industry-specific business process.

Lorna Brazell, a partner in the intellectual property department at law firm Bird & Bird, said there had been a rise in litigation around intellectual property, and user organisations were at risk of being caught out because, under English copyright law, the company that develops the code owns the copyright.

She said businesses should be careful to specify which intellectual property they want to retain when they sign development deals with suppliers. Failure to do so could result in the supplier gaining experience they could not find elsewhere, while users may find they are tied so closely to the software that they can get locked into a costly maintenance deal.

"In such an arrangement, customers may get the initial licence for free but then have to pay a hefty maintenance charge," Brazell warned.

Alexa Bona, research vice-president at analyst firm Gartner, said companies should try to get exclusive rights for 18 months and have a clause in the contract to preclude the supplier from selling to a direct competitor.

She also urged users to consider patenting their business processes to prevent enterprise software companies from incorporating them into their products.

Vote for your IT greats

Who have been the most influential people in IT in the past 40 years? The greatest organisations? The best hardware and software technologies? As part of Computer Weekly’s 40th anniversary celebrations, we are asking our readers who and what has really made a difference.

Email Alerts

By submitting my Email address I confirm that I have read and accepted the Terms of Use and Declaration of Consent.

By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

It can be tempting to stray from the security roadmap security professionals have put in place when data breaches like the Sony and Anthem breaches are all over the news. But experts say it's crucial to stick to the security basics.

The Open Data Platform has arrived, but not all Hadoop vendors are on board. The initiative, aimed at boosting interoperability, formed a backdrop for discussion at the Strata + Hadoop World 2015 conference.